Financial Data and Key Metrics Changes - Total revenue for the third quarter was $112.6 million, an increase of $1.8 million or 1.6% year over year [12] - Non-GAAP gross margin was 35.8%, up from 35.1% in the prior year [13] - Record adjusted EBITDA of $14.9 million, up 17% compared to the same period last year [5][15] - Non-GAAP EPS was $0.88, reflecting a 12.8% increase year over year [15] Business Line Data and Key Metrics Changes - North America revenue was $49.4 million, an increase of $5 million or 11% year over year, driven by growth in private networks [12] - International revenues decreased by $3.2 million or 5% to $63.2 million, attributed to a tough year-over-year comparison with APAC's record performance in the previous year [13] - Gross margins improved due to a favorable regional and software mix [14] Market Data and Key Metrics Changes - The mobile service provider market showed strong performance, with good software volumes contributing to improved gross margins [6] - The company maintained its share in the private networks segment in North America and expanded its sales funnel internationally [7] - No cancellations were reported from U.S. Federal government customers despite spending reduction efforts [8] Company Strategy and Development Direction - The company is focused on growing its scale and has seen success with its disciplined operating model [5] - Strategic discussions with U.S. headquartered Fortune 500 companies are ongoing, which may lead to increased business in the U.S. market [10] - The company is working to mitigate tariff impacts through inventory management and optimizing manufacturing locations [11] Management's Comments on Operating Environment and Future Outlook - Management believes the CapEx cycle for U.S. Tier one customers has bottomed out, with expectations for an uptick in demand in the coming quarters [24] - The company is maintaining its annual guidance and expects to meet current consensus estimates for revenue and EBITDA [16] - Management expressed confidence in the demand environment despite macroeconomic uncertainties [66] Other Important Information - The company has approximately $450 million in net operating losses, which will help minimize cash tax payments for the foreseeable future [15] - Operating expenses were managed effectively, remaining flat year over year due to disciplined cost management [49] Q&A Session Summary Question: What factors could swing guidance to the high end versus the low end? - Management indicated that potential pull-ins to avoid tariffs could positively impact results, while maintaining annual guidance [20] Question: What is the outlook for the U.S. Tier one market? - Management believes the CapEx cycle has bottomed and expects an uptick in demand in a couple of quarters [24] Question: Can gross margins continue to improve? - Management noted that while Q3 gross margins were strong, they do not expect further acceleration in Q4 due to macro uncertainties and tariff impacts [27] Question: What is the impact of tariffs on gross margins? - Management estimated a potential impact of 2% to 2.5% on COGS due to tariffs, but does not anticipate earnings leakage [36] Question: What is the outlook for North America and Tier one customers? - Management reported good private network business but noted they are currently between projects with U.S. Tier one customers [32][68] Question: What are the opportunities with large Tier one customers in MDUs? - Management highlighted the trend towards fixed wireless access in apartment buildings, which could drive future backhaul needs [42]

Financial Data and Key Metrics Changes - Total revenue for the third quarter was $112.6 million, an increase of $1.8 million or 1.6% year over year [12] - Non-GAAP gross margin was 35.8%, up from 35.1% in the prior year [13] - Record adjusted EBITDA of $14.9 million, up 17% compared to the previous year [4][15] - Non-GAAP EPS was $0.88, reflecting a 12.8% increase year over year [15] Business Line Data and Key Metrics Changes - Mobile service provider market performed well, with software volumes contributing to improved gross margins [5] - Initial sales of ProVision Plus software were reported during the quarter, indicating progress in servicing Tier one customers [6] - Private networks maintained demand share in North America and expanded internationally [6] Market Data and Key Metrics Changes - North America accounted for 44% of total revenues, with revenues of $49.4 million, an increase of 11% year over year [12] - International revenues were $63.2 million, a decrease of 5% year over year, primarily due to tough comparisons with a strong prior year in APAC [13] Company Strategy and Development Direction - The company is focused on maintaining a disciplined operating model and improving operational efficiencies [4][14] - Strategic discussions with U.S. Fortune 500 companies are ongoing, potentially leading to increased business in the U.S. market [10] - The company aims to remain margin neutral despite tariff impacts through productivity and sourcing adjustments [11] Management's Comments on Operating Environment and Future Outlook - Management believes the CapEx cycle for U.S. Tier one customers has bottomed out, with expectations for an uptick in demand in the coming quarters [25] - The company is cautious about the macro environment and tariffs, maintaining guidance for fiscal year 2025 within previously provided ranges [17][18] Other Important Information - The company has approximately $450 million in net operating losses, which will minimize cash tax payments for the foreseeable future [15] - Operating expenses were managed effectively, with a decrease year over year due to disciplined cost management [14][49] Q&A Session Summary Question: What factors could swing guidance to the high end versus the low end? - Management indicated that potential pull-ins to avoid tariffs could positively impact results, while maintaining annual guidance [20][22] Question: What is the current state of the U.S. Tier one market? - Management believes the CapEx cycle has likely bottomed and expects an uptick in demand in the next couple of quarters [25][26] Question: Can gross margins continue to improve? - Management noted that while Q3 gross margins were strong, they do not expect further acceleration in Q4 due to macro uncertainties and tariff impacts [28] Question: What is the outlook for North America? - The company is optimistic about private network demand and anticipates that the next U.S. Tier one project will kick in soon [34] Question: What is the impact of tariffs on the business? - Management provided an upper bound of 2% to 2.5% on COGS due to tariffs, but they do not anticipate any earnings leakage [35][76] Question: What is the status of strategic communications with U.S. customers? - Management indicated that discussions are ongoing and could lead to increased business opportunities in the U.S. market [51] Question: What is the outlook for the fourth quarter? - Management affirmed that they are guiding to consensus estimates, with expectations for a sequential build in revenues but not a significant increase [65][66]